A sign outside Applied Materials’ headquarters in Santa Clara, California, USA, on Thursday, May 13, 2021.
David Paul Morris | Bloomberg | Getty Images
chip equipment manufacturers applied materials plans to lay off 4% of its workforce.
The company said in a statement Thursday that it has begun notifying affected employees around the world “across all levels and groups.” Applied Materials provides equipment, services and software to industries including the semiconductor industry.
According to its August 2025 filing, Applied had approximately 36,100 full-time employees. The 4% workforce reduction equates to approximately 1,444 employees.
“Automation, digitalization and geographic mobility are redefining workforce needs and skill requirements,” the company said in the filing. “With this in mind, we have been focused for some time on building fast and productive teams, introducing new technology, and simplifying our organizational structure.”
The move comes at the end of the company’s fiscal year. Earlier this month, Applied said it expected its fiscal 2026 sales to decline by $600 million as the U.S. expanded the number of countries subject to export restrictions. As a result, the company’s stock fell 3% in after-hours trading.
As a result of the workforce reductions, Applied expects to incur costs of approximately $160 million to $180 million, consisting primarily of severance and other furlough benefits paid in cash, the filing states.
The company said the job cuts were a way to position itself as a “more competitive and productive organization.”
